The Scottish Land Commission has released formal recommendations to the government on natural capital - one of the biggest topics facing farmers in Scotland today.
The advice to Scottish ministers aim to help the country realise the opportunity of new value in the nation’s land and natural capital in a fair way.
It comes following in-depth research from the Scottish Land Commission, showing carbon and natural capital are an increasing influence in the land market, driving new motivations for land purchases and contributing to rising land values.
Recommendations focus on how the new investment and value in and can be managed responsibly with the ability of communities to engage in the market, ensuring the financial and wider benefits are shared fairly.
The Commission says the Scottish government should address the country's longstanding pattern of concentrated land ownership and include a public interest test at the point of significant land transactions.
Against a trend of increasing off-market sales, the land reform body proposes that the intention to sell large landholdings should be publicly advertised ahead of time to improve market participation.
It also calls for stronger leadership across public, private and voluntary sectors to introduce new forms of collaborative governance and ownership to increase community participation and build on the strengths of each sector to share risk and benefit.
Tax and fiscal policy could also be a key catalyst in influencing market behaviour, with recommendations to adjust the way public grants are targeted and consideration of the role that tax can play in securing long-term public benefit.
Chief executive of the Commission, Hamish Trench said: “Scotland has an opportunity to attract significant investment into its land and natural capital. Doing this in a fair and effective way is key to making a just transition to net zero.
"The Commission’s recommendations set out practical steps that can be taken to shape these markets and realise the opportunities on the ground.
"They help deliver on the Scottish Government’s land reform programme and its commitment to establishing high integrity, values-led natural capital markets.
“We are addressing not just the risks and opportunities of immediate changes associated with carbon but how the ways we own and manage Scotland’s land can adapt to other new influences, investment and value in future.
“Our advice is for all parties involved in the land sector, who together can shape a responsible approach to Scotland’s land to benefit all," he said.
Released alongside the recommendations is the second part of a major report looking into Scotland’s changing land market, which played a part in shaping the Commission’s advice.
The research shows that the supply of land coming to the market has remained relatively low but demand has increased significantly, resulting in rising land prices.
The findings also showed a shift in the market seeing two thirds of estate sales taking place off-market with half of the estates purchased in 2021 by corporate bodies, investment funds or charitable trusts.
These changes to the land market increase the risk that individuals, communities, local businesses and farmers may find it harder to buy land or to influence and benefit from land use change.
